Start a conversation

Why doesn't Store Operations export inventory values or adjustments to QuickBooks Pro?

Store Operations does not export any item information to QuickBooks. Any inventory adjustments in QuickBooks would need to be done manually.

It is impractical to post inventory valuation to your accounting package since starting values will fluctuate wildly until the beginning inventory has been entered and cost/quantities verified.

It is up to the retailer to post their beginning inventory valuation to their accounting package. From that point forward the ending monthly inventory valuation should be updated to your accounting package monthly, or the inventory change value, depending on which method is employed (change in value or BOM/EOM valuation).

If you wish to book inventory adjustments as losses you would also update this entry separately based on physical inventories being performed on a periodic basis and an adjustment report run.

Manually entering this figure at the end-of-month ensures you can make also make allowances as necessary. Doing this any other way is problematic with a point-of-sale system, since you will likely have inventory errors in your system that should NOT be posted to your accounting package. Daily valuation can be adversely affected by entry errors (Purchase Orders, adjustments, forced sales, etc.).

Here's another way to look at it from an accounting perspective:

Once you have a starting inventory balance entered into your accounting package, everything from that point forward falls into receipts, sales, transfers, or adjustments.

You are receiving items into inventory in RMS and printing the receiving report. Then, when the invoice from the vendor comes in, the PO and printed receiving document (from RMS) should be stapled to the invoice, and the qty and costs received should be verified to the invoice. Then the invoice is entered into your accounting software as a payable and charged to the Inventory account. This is how inventory "in" or received gets into the GL inventory account. The GL Inventory account is decremented by cost of sales, which you appear to be posting from RMS to your general ledger.

Basically, the cost that's received into RMS needs to be equal to what's added to the GL inventory account through A/P invoices in your accounting package. If it's not, the two systems won't agree.

Periodically you will want to update the changes in inventory due to shrinkage, loss, obsolete inventory, etc. This is an expense (loss) and there is no getting around it in retail. Mistakes are made, products disappear, inventory gets old.

It is a mistake to think the dollar value you invest in inventory is a constant or that the math will always add up. It's your job to keep the inventory fresh and the shrinkage to a mininum. That's where RMS comes into play, along with your sales skills and desire to keep things in check.

Note: Utilize the Physical Inventory module in Store Operations Manager to ensure your inventory is as accurate as possible. Physical inventories should be performed ALL YEAR LONG, not just once a year. The Physical Inventory module allows you to perform cycle counts including spot checks and  selected inventories using filters. Take advantage of this to control your shrinkage and track down data entry errors. Performing cycle counts year round means store-wide inventory counts at the EOY are unnecessary.

Choose files or drag and drop files
Was this article helpful?
  1. Dave J

  2. Posted